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What’s a ‘good enough’ financial plan?
Morningstar recommends broad diversification and account consolidation to save time and improve outcomes, noting total-market funds often outperform active management long-term.
- Morningstar recommended everyday investors simplify portfolios by reducing accounts and urged adopting automated contributions, Christine Benz, Morningstar's director of personal finance and retirement planning, said.
- Most people lack large lump sums, so automatic investing removes timing questions and satisficers avoid intensive analysis that optimizers prefer.
- Morningstar research shows satisficer portfolios should lean on total‑market index funds and target‑date funds, avoiding one‑off bets like I bonds and TIPS ETFs/ladders.
- Keeping fewer moving parts makes portfolios easier to monitor and simpler for loved ones or a financial adviser to manage, while professional financial planners offer peace of mind despite typical fees of $350-$500 an hour.
- Adopting simpler habits could reduce risky bets and shift some demand toward financial planners, while Morningstar recommends minimizing other financial relationships to one or two credit cards.
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What’s a ‘good enough’ financial plan?
I’m a classic satisficer: I’m usually quick about making decisions and often fall back on the tried-and-true. Some people are optimizers, carefully analyzing almost every choice, whether it’s a new sofa or a cup of coffee. Related Articles Holidays and a viral bear cup drive strong quarterly sales at Starbucks Federal Reserve may keep rates unchanged for months as economy shows signs of health Amaz…
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Total News Sources26
Leaning Left3Leaning Right1Center20Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
13%
C 83%
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